## Multinomial Logit

Starting with version 1.8.1, Gretl includes a routine to estimate multinomial logit (MNL) using maximum likelihood. In versions before 1.8.1 the alternatives were either (1) use gretl’s maximum likelihood module to estimate your own or (2) use another piece of software! In this section we’ll estimate the multinomial logit model using the native gretl function and I’ll relegate the other methods to a separate (optional) section 16.3.1. The other methods serve as good examples of how to use gretl’s scripting language and how to use it in conjunction with R.

In this model the dependent variable is categorical and is coded in the following way...

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